What you forego in order to engage in that activity, compared to the best available alternative.
What is Opportunity Cost
100
a graph that shows the combinations of output that can possibly be produced given the available factors of production and the available production technology
What is PPF
100
for each to be completely specialized in production, and will then trade in order to get some of the other's good
What is Comparative Advantage (Optimal)
100
"the amount of a good that buyers are willing
and able to purchase; falls when the price of the good rises"
What is Quantity Demanded
100
father of modern economics, introduced the notion of the `invisible hand'
Who is Adam Smith
200
refers to the sum of all individual demands for a particular good or service; individual demand curves are summed horizontally to obtain the market demand curve
What is Market Demand
200
"refers to a situation in which the price has reached the level
where quantity supplied equals quantity demanded"
What is equilibrium
200
"the amount of a good that sellers are willing
and able to purchase; rises when the price of the good rises"
What is Quantity Supplied
200
"measure of the responsiveness of supply and demand to
changes in the price; AKA the slope of the supply or demand curve"
What is elasticity
200
"refers to the sum of all individual supplies for a particular
good or service; individual supply curves are summed horizontally to obtain the market supply curve"
What is Market Supply
300
"measure of the responsiveness of supply and demand to
changes in the price; AKA the slope of the supply or demand curve"
What is elasticity
300
When the government sets a height maximum on price. Causes excess demand. Example: Rent Control
What is Price Ceilings
300
When the government sets height minimum on price. Causes excess supply. Example: Minimum Wage
What is Price Floors
300
Y = C + I + G + X
What is GDP
300
"buyer's willingness to pay for a good minus the
amount the buyer actually pays for it"
What is consumer surplus
400
the percentage of the LABOR FORCE that is unemployed
What is unemployment rate
400
measures the change in the cost of living faced by an `average' consumer
What is CPI
400
measures the changes in the prices of all the goods that together constitute GDP
What is GDP Deflator
400
"results because the number of jobs available is insufficient to provide one for everyone who is willing to work (at the going wage)"
What is Structural unemployment
400
"the excess of the price of a good over what a seller
would have been willing to sell it for (his cost of production)"
What is Producer Surplus
500
"refers to the unemployment that results from the time that it takes to match workers with jobs"
What is frictional unemployment
500
Something of intrinsic value that everybody likes which means that people are confident others will accept it in future trades like grain.
What is commodities monies
500
if something grows at a rate of x% a year, it will double in approximately 70/x years.
What is Rule of 70
500
the percentage of the adult population that is in the labor force
What is labor-force participation rate
500
"means that there can be gains from trade, even when
production possibilities frontier are identical"